Assume the Standard Trade Model with Two Countries (Alpha and Beta)

question 16

Multiple Choice

Assume the standard trade model with two countries (Alpha and Beta) , two goods (food and drink) , and two factors of production (land and labor) . Further assume that Alpha is relatively labor-abundant and drink is relatively labor-intensive. According to the Heckscher-Ohlin theory, Beta has a comparative advantage in the production of:

• A)drink.
• B)food.
• C)both goods.
• D)neither good.

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Definitions:

Organizational Politics

Refers to activities within a company that are aimed at improving someone's status or position and are typically at the expense of others.

Empowered Group

A team or group that has been given the authority, resources, and confidence to make decisions and take actions toward achieving defined objectives.

Environmental Uncertainty

A condition in which there is a lack of information about the external conditions that affect an organization's decision-making processes.

Delegator

A leader or manager who assigns responsibility and authority for tasks and decisions to subordinates or team members.